Drilling Report

Cairn Energy PLC
24 July 2003


EMBARGOED FOR RELEASE AT 0700


                                                                    24 July 2003



                                CAIRN ENERGY PLC

                       Western India - Operations Update

Gujurat - Block CB/OS-2

Cairn announces the successful result of GA-3, the third well in the ongoing
Gauri development drilling programme.  The well encountered approximately 44
metres of gas bearing reservoir sands and better than prognosed net oil bearing
sands of approximately 9 metres.   It is planned to test this oil zone at the
end of the development drilling programme.

Operations have started on GA-4, the fourth well in the Gauri development
drilling programme.

Gauri gas production is planned to commence in the first half of 2004 and gas
will be evacuated via the Lakshmi gas-gathering system.  Oil development options
will be considered after the testing of the GA-3 well.

Enquiries to:

Cairn Energy PLC:

Bill Gammell, Chief Executive
Tel: [phone]

Kevin Hart, Finance Director
Tel: [phone]


Brunswick Group Limited:

Patrick Handley, Catherine Bertwistle, Mark Antelme   Tel: [phone]

Notes to Editors:

1.      'Cairn' where referred to in this release means Cairn Energy PLC and/or
its subsidiaries, as appropriate.

2.      Cairn holds a 75% exploration interest in Block CB/OS-2, with the
remaining exploration interests being held by Oil & Natural Gas Company Ltd.
('ONCG') with 10% and TATA Petrodyne Limited ('TATA') with 15%. ONGC has a right
to increase its interest by 30% in the event of a commercial discovery on the
block and has exercised this right in respect of Lakshmi and Gauri (Cairn 50%,
ONGC 40% and TATA 10%).




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